Contribution rules prompt SMSFs to drop cash in FY18
Following a spike in cash holdings during the 2017 financial year, SMSFs have been reducing their cash exposure in the past 12 months and boosting their allocation to Australian equities, according to a survey.
A recent SuperConcepts survey comprising 2,600 SMSFs with assets of $3.6 billion indicates that short-term deposits dropped from 19.8 per cent at 30 June 2017 down to 17.3 per cent at 30 June 2018.
SuperConcepts executive manager of SMSF technical and strategic services Phil La Greca said many SMSF trustees saw the change to the contribution rules as their last opportunity to make large non-concessional contributions to superannuation.
“These monies were then mainly invested in the Australian equities sector,” he said.
“When stripping out performance, the cash allocation to Australian Equities increased by 1.5 per cent due to investment from these cash amounts.”
In addition, CBA recently found SMSFs have dropped another favourite in the way of blue-chip holdings, and are now turning their attention to mid and small cap companies.
Miranda Brownlee
Miranda Brownlee is the deputy editor of SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.
Since joining the team in 2014, Miranda has been responsible for breaking some of the biggest superannuation stories in Australia, and has reported extensively on technical strategy and legislative updates.
Miranda also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.
